DICKS SPORTING GOODS-Leading omni-channel sporting goods store Dick's Sporting Goods, Inc. provides a large selection of top-notch sports gear, clothing, accessories, and footwear. The corporation ran 728 locations in the US as of 2023.

Methods of Inventory Accounting Dick's Sporting Goods values their inventory using the average cost technique. Through the average of all comparable things for sale over the period, this strategy evens out price changes over time.

Year Net Sales COGS Gross Margin Gross Margin Ratio (%)

2023 $12,366 $8,123 $ 4,243 34.3%

2022 $12,293 $8,015 $ 4,278 34.8%

2021 $11,112 $7,241 $ 3,871 3 4.8%

Gross Margin: From $4,278 million in 2022 to $4,243 million in 2023, there is a slight decline.

Gross Margin Ratio: In 2023, it dropped slightly from 34.8% in 2022 to 34.3%.

Trend: Over the previous three years, the gross margin and ratio have remained largely steady, demonstrating steady cost- and price-controlling tactics.

Food Locker-Global retailer of athletic clothing and footwear is Foot Locker, Inc. Under a variety of brand names, such as Champs Sports, Eastbay, Sidestep, Kids Foot Locker, Lady Foot Locker, and Foot Locker, the corporation runs about 2,600 locations in 27 countries.

Methods of Inventory Accounting Foot Locker use the First-In, First-Out (FIFO) approach to value its inventory. During times of rising prices, this method can result in reduced cost of goods sold and higher net revenue since it assumes that the oldest inventory products are sold first.

Year Net Sales COGS Gross Margin Gross Margin Ratio (%)

2023 $8,758 $5,847 $2,911 33.2%

2022 $9,006 $5,934 $3,072 34.1%

2021 $7,548 $4,936 $2,612 34.6%

Gross Margin: $2,911 million in 2023 as opposed to $3,072 million in 2022.

Additionally, the gross margin ratio dropped from 34.1% in 2022 to 33.2% in 2023.

Trend:Foot Locker's gross margin and gross margin ratio declined more noticeably than other companies. This loss could have been caused by a number of factors, such as adjustments to pricing strategies, variations in costs, or changes in consumer demand.

Both businesses' gross margin ratios have been comparatively steady, while Foot Locker's decrease in 2023 was more than Dick's Sporting Goods'. This might be the result of various inventory management techniques, market dynamics, or pressure from competitors. Dick's Sporting Goods has been able to sustain a little higher gross margin ratio over time, which may be a sign of improved cost management or more successful pricing tactics. In result, though both businesses are involved in the retail of sporting goods, there are variances in their financial performance and business approaches, which can affect their gross margins and ratios. Dick's Sporting Goods seems to have a little advantage in keeping its gross margin ratio higher, which may be a result of its efficient operations and competitive position

question :

• What is the trend(s) in the accounts receivable turnover ratio and the number of days sales in accounts receivable for both companies?
• How do they compare to each other?
• Which is more effective at collecting their accounts receivable faster?
• For your selected two companies: Compute the accounts receivable turnover ratio and the number of days sales in accounts receivable for the last (latest) two years and the two companies you researched and show the bases of calculation as part of initial response. Comment on results.